New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-12-08
PROFITS FROM TELEPHONES
CONTINUING The INVESTIGATION.
FACTS AND FIGURES ABOUT THE NETWORK AND
NEw-JFRsEY COMPANY.

| FACTS AND FIGURES ABOUT THE NETWORK AND
| NEw-JfRsEY COMPANY.
| The Assembly Telephone Investigating Committee
returned to this city yesterday and resumed It's la
| bors at the Coal and Iron Exchange Building Chair
man Answorth presided. and all the members wcro
present except Mr.. Dckcy j. II. Camp. the quiet
and astuc legal adviser Of all the telephone COM
pancs under Investigation, on hand also Charles
f. Cutler. who figures president, now as treas
urcr and now as director I'm some of the companies
George C. Clark who IS also kaleidoscope In his re-
lations to the companies, was present. too
The day was given to the New York and Ncw-Jcr-
scy Telephone Company. whose field is all Of Long
Island and that part Of New Jersey to be found with
in radius Of Thirty three miles of this city, with the
rest Of Monmouth County Charles f. Cutler was OK
amined - president Of the company. The company
was organized in June, 1883 with capital of 100000
raised month later 10 5000. when the Long Island
and New Jersey companies consolidated The
prcscnt company issued one third Of It's stock,
$500 600 to the Metropolitan for It's franchise,
81 1903 20 for property, and S2O63ls % for money
assets consisting of materials and bills rccciv able.
The original stock In the two companies had been
nlaccd I'm the hands Of a trustee who had turned IL
over to a syndicate which had formed the New-fork
and cwJcIscy Company, the price PAID being
~ 600 cash. for the ~ 5000 in stock or 81 80
a share Tho company issued the ~ 100000 In stock
for what I'm cash s053, 6j1 -. The net profits
December 81 last han Dccn f'oo'fl Oo' lhc 'o'di
dividends paid, $434OOO, giving surplus earnings Of
s177.4I7 90. Tie rate Of dividends to the capital
stock was i.235 per cent
Mr. Cutler had figured up the expenses Of the com
pany for only 1soG, making them $255.900 90; these
Included $50 277 10 royalties. The debt last Dcccm
Der was s36l 800 borrowed money. The cash IN
vested to December last was II 100000.
The company has thirty nine exchanges. The Long
Island Railroad Company pays $500 year for the use
Of Two Instruments cents each time, 1t aver
ages $1,000 communications a year. Mr.. Cutler for
this and other reasons favored tho toll system
against Hat rates The Metropolitan Company got
60 Der cent Of the trunk business between the New
lis $500 stock for franchise S1i for each set of
Instruments aud half Western Union commissions.
The New York and Ncv-Jcr,cy has 80 miles Of pole
lines 1-i7 miles If toll lines 300 miles exchange pole
lines. and 1888 miles Of exchange wires. The num-
Der OF subscribers (, 6.ijS.
Mr. Cutler argued for the toll system, declaring that
n plumber In Brooklyn who paid $50 year Tor his
Telephone used It on an average sixty times day,
ell ON calls from patrons The instrument was III
continual for four and half hours daily.
A. against S25jSOD % expenses for l7r6. the gross
earning, were Sal go 30 These came I'm part from
500 for business houses and $50 from dwellings In
mcnts n that city got their telephones In return Tor
local franchises. in the main There were ninety
COMPANY had go mile, of underground wires I'm Brook
lvu with thirteen miles 81 conduit; II had required
g cht miles II conduit thl, last year; for IA" thirteen
miles the cost had been $15iOoO. Tho witness de-
Jared that trouble from uOnusulation OF wires under
rrouuI began after the half mile limit had been passed
- many improvements were being made I'm under !
ground Construction that present work ON II would
hot last longer than eight years.
The Metropolitan Company, The connecting INK BE- !
tween the small companies AMI the American Bell |
ompauy, VIII b. g., ahmed today.